Declaration of Policy
- The State commits to protecting marine wealth in Philippine waters by adopting internationally recognized measures imposing strict liability for oil pollution damage.
- Ensures prompt and adequate compensation for affected parties.
- Implements the 1992 International Conventions on Civil Liability and Compensation for Oil Pollution Damage.
Key Definitions
- Defines important terms including the 1992 Civil Liability Convention, 1992 Fund Convention, maritime authorities (MARINA, PCG, PPA), corporate relations (Affiliate and Subsidiary Corporations), types of oil (Crude, Fuel, Contributing Oil), and concepts such as Incident, Oil, Owner, Person, Pollution Damage, Preventive Measures, and Ship.
- Pollution Damage includes loss beyond the ship due to oil escape or discharge, preventive costs, environmental restoration, damage to human health, and consequential losses.
Incorporation of International Conventions
- The 1992 Civil Liability and Fund Conventions, including amendments, are part of Philippine law.
Scope of Application
- Applies exclusively to pollution damage within Philippine territory, territorial sea, and exclusive economic zone.
- Applies to preventive measures taken to minimize damage.
Strict Liability for Oil Pollution Damage
- Ship Owner liable for pollution damage caused by the ship at the time of an Incident or series of occurrences.
- Covered damages include cleanup costs, preventive measures, consequential losses, pure economic loss, human health damage, environmental damages, and restoration costs.
Exemptions from Liability
- Owner or insurer not liable if damage caused by war, natural phenomena beyond control, deliberate third-party acts, or government negligence in navigation aids.
- Possible exoneration if damage caused by victim’s intentional or negligent acts.
Persons Exempted from Compensation Claims
- Crew, agents, pilots, charterers, salvage operators, and persons taking preventive measures are exempt unless damage caused intentionally or recklessly.
- Owner’s right to recourse against third parties is preserved.
Joint and Several Liability
- Owners of multiple ships involved in an Incident causing inseparable damage are jointly and severally liable.
- Owners retain rights of recourse among themselves or against third parties.
Limitation of Liability
- Owner may limit liability based on ship tonnage using special drawing rights (SDR), with established caps.
- Limitation not applicable if damage results from intentional or reckless acts by the Owner.
Constitution of Fund for Liability Limit
- Owner must constitute a fund with MARINA equal to liability limit by cash deposit or financial guarantee.
- Claims for compensation must be brought to Regional Trial Courts.
Compulsory Insurance and Certification
- Annual insurance or financial security required covering liability limits.
- MARINA issues certificates of insurance to ships carrying over 2,000 tons of oil.
- Certificates include ship and owner information, type of security, insurer details, and validity.
Enforcement of Insurance Requirements
- Ships without valid certificates denied port entry and services.
- Ships found within Philippine waters without certificate barred from loading/unloading and departure until fines and compliance are met.
- PCG inspects certification upon entry with minimal delay.
Contributions to International Oil Pollution Compensation Fund
- Persons receiving over 150,000 tons of contributing oil annually in the Philippines must contribute.
- Aggregates contributions from subsidiaries/affiliates.
Reporting Requirements
- Persons receiving contributing oil must report quantities annually to the Department of Energy.
- DOE coordinates data transmission as required by international conventions.
Actions for Compensation
- Claims for pollution damage may be filed in Regional Trial Courts against Owners and insurers.
- Foreign insurers considered to be transacting business, subject to Philippine jurisdiction.
- Claims must be filed within three years from damage date and no later than six years from Incident date.
- PCG authorized to investigate incidents, support complainants, and initiate actions.
- Filing fees reduced; indigents exempt with fees becoming liens on judgments.
Adjudication or Settlement of Claims
- RTC to decide or certify settlements promptly.
- Claims under the Civil Liability Convention prioritized, with recourse to Fund Convention where insufficient.
- Compensation distributed pro rata if funds are insufficient.
Intervention by IOPC Fund
- International Oil Pollution Compensation Fund may participate in proceedings against Owners or their guarantors.
Penalties for Violations
- Fines imposed for failure to maintain insurance, operate without certificates, failure to contribute to the Fund, failure to report contributing oil, and obstructing inspections.
- Ship detention possible for violations.
- Fines scaled by ship size or number of offenses and adjusted periodically for inflation.
Institutional Mechanism
- Department of Transportation and Communications (DOTC) is lead implementing agency.
Oil Pollution Management Fund (OPMF)
- Established and administered by MARINA.
- Funded by contributions from tanker operators, impost on oil deliveries, fines, grants, donations, and appropriations.
- Fund used mainly for containment, clean-up, research, enforcement, and monitoring; personal services expense limited.
- Advances made subject to reimbursement upon final judgment.
Appropriations
- DOTC to include Act implementation in programs and budget.
Implementing Rules and Regulations
- To be promulgated within 3 months by DOTC with other agencies.
- Procedures manual for enforcement to be published.
Separability Clause
- Unconstitutional provisions do not affect validity of remaining law.
Repealing Clause
- Conflicting laws, decrees, rules, and orders are repealed or modified accordingly.
Effectivity
- Law effective after publication in newspapers for three consecutive weeks.